Michigan Attorney General Dana Nessel has filed a lawsuit against KalshiEx LLC (Kalshi), alleging the derivatives exchange and prediction market company violated Michigan’s Lawful Sports Betting Act (LSBA). The lawsuit, filed in the Ingham County Circuit Court on behalf of the People of the State of Michigan and the Michigan Gaming Control Board, seeks an order of abatement and injunctive relief to halt what the attorney general contends is the unlawful offering of online sports wagers to Michigan residents.
Nessel asserts in the complaint that Kalshi offers an online operation that enables Michigan residents to engage in sports betting under the guise of trading event contracts. The platform allows users to place wagers on the likelihood of sports-related outcomes, conduct transactions through widely used financial systems, and participate in what the lawsuit alleges constitutes unlicensed gambling activity. The attorney general contends that Kalshi conducts this business in Michigan without the licensing approval of the Michigan Gaming Control Board in violation of the LSBA.
“Corporations cannot circumvent state gaming laws,” said Nessel. “My office will hold those who sidestep Michigan’s consumer protections accountable and ensure that betting in our state remains lawful, fair and subject to the oversight our residents expect and deserve.”
The lawsuit asks the Ingham County Circuit Court to declare Kalshi's internet sports betting operation a common law nuisance and to issue a permanent injunction and order of abatement enjoining and restraining Kalshi from engaging in or advertising its internet sports betting operation in Michigan.
Nessel asserts in the complaint that Kalshi offers an online operation that enables Michigan residents to engage in sports betting under the guise of trading event contracts. The platform allows users to place wagers on the likelihood of sports-related outcomes, conduct transactions through widely used financial systems, and participate in what the lawsuit alleges constitutes unlicensed gambling activity. The attorney general contends that Kalshi conducts this business in Michigan without the licensing approval of the Michigan Gaming Control Board in violation of the LSBA.
“Corporations cannot circumvent state gaming laws,” said Nessel. “My office will hold those who sidestep Michigan’s consumer protections accountable and ensure that betting in our state remains lawful, fair and subject to the oversight our residents expect and deserve.”
The lawsuit asks the Ingham County Circuit Court to declare Kalshi's internet sports betting operation a common law nuisance and to issue a permanent injunction and order of abatement enjoining and restraining Kalshi from engaging in or advertising its internet sports betting operation in Michigan.
